[SMM Blast Furnace Operating Rate] As Steel Mills Gradually Resumed Production, Blast Furnace Operating Rate Steadily Increased

According to an SMM survey, on October 16, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 90.47%, up 0.29% WoW. The capacity utilisation rate of blast furnaces was 91.09%, up 0.45% WoW. The daily pig iron production of the sample steel mills was 2.4482 million mt, up 13,000 mt WoW.

Image 1: Blast Furnace Operating Rate & Capacity Utilisation Rate

Data Source: SMM

Image 2: Future Pig Iron Forecast

Data Source: SMM

This week, one blast furnace was under maintenance, and six blast furnaces resumed production. As the profits of steel mills gradually stabilised, coupled with the recent strong expectations of various favourable macro policies from the state, the market has some expectations for future steel demand. Many steel mills that had previously suspended production due to losses have gradually resumed production. Looking ahead, although the market has strong expectations for subsequent policies, the recovery of downstream and end-use steel demand still needs time. Therefore, after this peak of resumption, steel mill production may enter a relatively stable phase, and the blast furnace operating rate is expected to fluctuate rangebound.

190 Sample Blast Furnace Operating Rate